Updated: Jul 1, 2023
This tool will help you pay off loans faster, which is one of the challenges, and it's crucial for individuals to carefully consider their financial decisions before taking on debt. Loans can cause stress and financial burdens for many people, regardless of their religious beliefs. In the context of Islamic finance, specific principles govern financial transactions for Muslims. Islamic finance aims to adhere to Shariah law, which prohibits certain practices such as charging or paying interest (riba) and engaging in speculative or uncertain transactions (gharar). Instead, Islamic finance promotes principles such as risk sharing, asset-backed financing, and promoting economic and social justice. While it's true that there may not be as many options for halal financing available compared to conventional financing, the Islamic finance industry has been growing steadily in recent years to cater to the needs of Muslim consumers, especially those living in Muslim minority countries. Many financial institutions now offer Shariah-compliant products and services, including home, personal, and business financing.
The calculator is customized to meet the requirements of auto, furniture, or other loan calculations. The calculator will help the user understands the variation of interests due to non-payment or delayed payments. Auto and other loan interest are one of the contributors to owning debts. Compared to Home, Auto and furniture have far more options that lure more people to sign up quicker and easier.
The bigger the payment, the fewer years to pay off a loan. Observe the change in calculation by making an additional payment per year. The suggested additional payments will automatically populate from 1%, up to 16% of the loan amount.
DISCLAIMER: We strive to offer users accurate information to the best of our knowledge. However, laws are subject to change; therefore, the user assumes full responsibility and should utilize the information on our website and this tool as a reference per our terms and conditions. If you believe any part of the calculation is incorrect or contains errors, we kindly request your feedback here.